It’s time to stop water companies profiting from pollution

Today, families across England and Wales woke up to the news that their water bills are set to rise by 36% over the next five years – equivalent to an average extra of £31 a year onto household costs. This announcement from water regulator Ofwat comes at a time when millions are already grappling with the cost of living crisis, and in a year when the last government lost office in part due to their inability to get a grip of issues like this. 

Public anger over the state of the water industry has never been higher.

And who can blame them? This isn’t just about the money – though that alone is a gut punch for so many households. It’s also about trust. How can water companies justify hiking bills while spilling sewage into our rivers and seas, ignoring leaking pipes, and handing out eye-watering bonuses to executives?

Water bosses pocketed £9.1 million in bonuses last year. In recent years, sewage spills into our waterways more than doubled. The industry has failed catastrophically on its most basic responsibilities. But Ofwat, the body supposedly tasked with protecting consumers and holding water companies to account, has failed too.

The public isn’t fooled. Rapid-response polling by 38 Degrees shows an overwhelming sense of outrage. One person JL Partners spoke to on our behalf called the bill hikes “daylight robbery”. Another asked: “Why are we so weak on these matters?”

In recent months, 38 Degrees has shone a light on the scale of the crisis through Freedom of Information investigations, uncovering more than 1,135 criminal convictions and £164 million in fines for water companies since privatisation. Fines and penalties alone are clearly not enough to drive meaningful change.

Ofwat needs the resources, the power, and the will to punish the water companies where it hurts. Its mandate still prioritises ensuring water companies can make a profit. Incredibly, Ofwat has a legal duty to protect shareholder returns, even as the companies it oversees pollute our rivers, flout the law, and fleece their customers.

This broken model can’t continue. Public anger is turning into action. Across the country, people are demanding an end to this toxic mix of greed and negligence. They’re calling for bold reforms to clean up our rivers, hold water companies accountable, and ensure no household has to foot the bill for corporate mismanagement ever again.

The solution starts with redefining Ofwat’s priorities. Clean water, conservation, and fair billing should take priority over profit. Companies that fail to meet basic environmental standards should face severe penalties – up to and including the loss of their licenses. And the Government must ensure that taxpayers and billpayers are shielded from the financial fallout of corporate failure.

It’s also time for transparency. Water companies currently monitor only the most basic pollutants, whilst ignoring critical risks like viruses, bacteria, and microplastics. We need independent, unannounced inspections to ensure the public knows the true state of their water.

Perhaps most importantly, accountability must extend to the top. CEOs and directors of water companies that flout environmental laws should face personal consequences. Without real penalties for those in charge, this cycle of pollution and profiteering will continue unchecked.

Voters are demanding change. The new government promised change. The question now is whether decision makers will rise to the occasion. 

Without bold action, families will continue to pay the price – both in higher bills and in the ongoing destruction of our natural environment. Enough is enough. It’s time for a water industry that works for people and the planet – not just for profit.